Buying a Courtyard by Marriott franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 5 7(a) loans to buy an existing Courtyard by Marriott (classified mostly as Hotels (except Casino Hotels) and Motels), totaling $17.8M. The median loan was $5,000,000, 675% higher than the $645,250 median for all SBA-financed acquisitions. 3 of these loans were approved in the last two fiscal years.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Courtyard by Marriott resale loans landed between $2,492,500 and $5,000,000.
- Lender experience exists. Embassy National Bank alone has financed 1 Courtyard by Marriott resales.
- Guaranty. The SBA guaranteed 75% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Courtyard by Marriott resale
The median SBA 7(a) loan for a Courtyard by Marriott resale was $5,000,000 across 5 loans (FY2018 to FY2026). Embassy National Bank, Global One Bank and US Metro Bank have financed the most Courtyard by Marriott resales. Too few of these loans are old enough to measure a charge-off rate; the average for all SBA acquisition loans is 3.5%.
Courtyard by Marriott acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 2 | $7.5M | $3,746,250 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 2 | $5.4M | $2,675,200 | |
| FY2026 | 1 | $5M | $5,000,000 |
How often do these acquisition loans fail?
Fewer than 20 Courtyard by Marriott acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
Seller note standby terms and third-party consents are reviewed before closing.
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Lenders financing Courtyard by Marriott resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Embassy National Bank | 1 | 20.0% | $5M | |
| 2 | Global One Bank | 1 | 20.0% | $5M | |
| 3 | US Metro Bank | 1 | 20.0% | $5M | |
| 4 | Ergo Bank | 1 | 20.0% | $2.5M | |
| 5 | Midland States Bank | 1 | 20.0% | $350K |
States where Courtyard by Marriott units are bought
Terms signed in the LOI shape the purchase agreement that follows.
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Questions buyers ask
How much do buyers borrow to buy a Courtyard by Marriott franchise?
The median SBA 7(a) loan for a Courtyard by Marriott resale was $5,000,000 across 5 loans (FY2018 to FY2026). The middle half of loans ran from $2,492,500 to $5,000,000. The loan excludes the buyer's equity and any seller note and may include working capital, so the price is usually higher than the loan.
Which banks finance Courtyard by Marriott acquisitions?
Embassy National Bank has made the most SBA acquisition loans for Courtyard by Marriott (1, 20% of the total). Global One Bank, US Metro Bank, Ergo Bank follow.
What interest rate and term do Courtyard by Marriott acquisition loans carry?
The average initial rate at approval was 7.05% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 25 years.
Is a Courtyard by Marriott resale riskier than other SBA-financed acquisitions?
Too few Courtyard by Marriott acquisition loans are old enough to measure. The benchmark for all SBA acquisition loans is 3.5% charged off in the FY2018 to FY2021 cohort.
Where are Courtyard by Marriott units being bought with SBA loans?
Texas (2), Illinois (2), Georgia (1). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
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Related
- All Hotels (except Casino Hotels) and Motels acquisitions
- Texas acquisitions
- Illinois acquisitions
- Georgia acquisitions
- Global One Bank
- US Metro Bank
- Midland States Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Courtyard by Marriott" (franchise code S0433). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.